Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Related Party Transactions Conversant During the six months ended June 30, 2026, the Conversant Investors purchased an additional 3,739,716 shares of common stock of the Company for $100.0 million in a private placement. See “Note 9–Securities Financing.” During the six months ended June 30, 2026, the Company entered into certain agreements with Conversant Investors in connection with the CHP Merger. See “Note 2–CHP Merger.” On March 11, 2026, the Company entered into an agreement with the Conversant Preferred Investors in order to induce the immediate full conversion of the Series A Preferred Stock into shares of the Company’s common stock. Pursuant to the agreement, the conversion price of the Series A Preferred Stock was decreased from $40.00 per share of common stock to $32.00 per share of common stock, the expiration date of all of the outstanding warrants issued on November 3, 2021 was extended from November 3, 2026 to November 3, 2027, and the Company made a one-time payment to the Conversant Preferred Investors totaling $4.7 million. In addition, the Company paid the Conversant Preferred Investors $1.1 million, for accrued but unpaid dividends for the period of January 1, 2026 through March 11, 2026. On March 11, 2026, all of the outstanding shares of Series A Preferred Stock were converted into 1,601,505 shares of common stock. Stone Joint Venture As of June 30, 2026, the Company manages the four communities owned by the Stone JV under a management agreement and also provides reporting services for the joint venture. See “Note 4–Investments, Acquisitions and Assets Held for Sale.” During the six months ended June 30, 2026, the Company received a return of its investment of $11.1 million in the Stone JV. In May 2026, the Stone JV refinanced its then-existing note payable totaling $34.0 million, secured by the four owned communities. The new financing consists of $70.0 million of variable rate demand multifamily housing revenue bonds, backed by an irrevocable $70.9 million letter of credit covering principal and accrued interest. On the date of issuance, origination and underwriting fees of $0.6 million were paid in consideration of the issuance of the letter of credit, with additional maintenance fees of 2.85% per annum on the outstanding letter of credit amount to be paid in monthly installments. The Company received excess net proceeds from the financing based on its respective membership percentage interests, which is listed above. The new financing has a 20-year term, a variable interest rate of 3.7% on the bonds, and a 2.85% maintenance fee on the letter of credit. As of June 30, 2026 and December 31, 2025, the outstanding balance of the Stone JV loans were $70.0 million and $35.0 million, respectively. The Company has guaranteed $17.7 million of the outstanding balance of the JV loan as of June 30, 2026. Palatine Joint Venture For the six months ended June 30, 2026, the Company managed three communities owned by subsidiaries of Palatine in a joint venture under a management agreement and also provided reporting services for the joint venture. On March 31, 2026, the Company purchased the noncontrolling interest of one of the two joint ventures and the community is wholly owned by Sonida as of that date. See “Note 4–Investments, Acquisitions and Assets Held for Sale.” Parc Communities LLC In April 2026, the Company purchased a preferred equity investment in Parc LP totaling $1.8 million with a purchase call option in a community owned by the entity totaling $1.0 million. The preferred equity investment carries a 15% annual non-compounding coupon. The general partner of Parc Tradition LP is Parc Communities LLC, which is a third-party manager of two of our communities.
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